Wednesday, July 27, 2016 Morning Comments by Michael Blythe
Good morning. I could likely copy and paste what I have written the first two day’s of this week. Demand zone is still 2155-60 and supply zone is 2165-70. Trading the open has been the strength this week (at least for me).
Prices below are as follows: 2165 (*) as my early pivot, then initial support at 2160 (*) followed by 2155 (**). A clear break below that targets 2146 (***) where I would expect buyers to come in. Below 2146 I would not be buying.
Above: 2170 (**) seems to be itching for a RTH test how the ESU handles that area will be the tell today for me. Above is 2172 (*) 2175 (*) and 2178 (*) as targets.
Bottom line, it’s Fed day. Best trade will be early before everything goes quiet. Last Fed meeting the reaction was fairly muted and I would not be surprised to see a *relatively* muted reaction today.
All the best;
Michael Blythe
Futures Strategist
Hamzei Analytics, LLC
